Trump orchestrates NAFTA stalemate in an effort to get his way.
North American Free Trade Agreement (NAFTA) talks have come to a standstill between Canada and the U.S.
And make no mistake, Trump is behind the tactic.
Trump’s strategy is simple and straightforward – get a deal with Mexico and then sideline Canada.
So Canada loses clout that Mexico and Canada would have had, if the two had stood up to Trump.
But instead Mexico closed a NAFTA deal with Trump.
And Canada tried to put a brave face forward.
But soon it became apparent that Prime Minister Trudeau had enough of Trump’s antics.
And while there was a flurry of activity by both sides after the Mexico deal it did not last long.
Trump Orchestrates NAFTA Stalemate
So today Trump is standing firm in his NAFTA demands.
He wants the right for American dairy products to be sold in Canada.
Currently that is not the case.
Canadian dairy farmers are protected by a high Canadian tariff wall.
This effectively keeps U.S. dairy products out of Canada.
Another major sticking point is chapter 19.
“We need to keep the Chapter 19 dispute resolution because that ensures that the rules are actually followed, and we know we have a president who doesn’t always follow the rules as they’re laid out,” Prime Minister Justin Trudeau says.
Chapter 19 gives NAFTA countries the right to appeal to an expert panel.
The panel rules on whether a nation has been dumping its goods into another country.
Canada has used Chapter 19 no fewer than 45 times – more than any NAFTA partner.
Trump has threatened a 25 per cent duty on cars made in Canada entering the U.S.
The impact would be devastating on Canada’s economy.
More than 80 per cent of Canada’s car production is exported to the U.S.
And for now the NAFTA talks almost have come to a halt.
Chrystia Freeland, Canada’s chief NAFTA negotiator, is in no rush to join the talks in Washington.
She has indicated she would return this week but provided no timetable.
This is in sharp contrast of a few weeks ago when she cut short a European trip to attend the talks.
And while Freeland publicly portrays a positive attitude on NAFTA, privately it is the exact opposite.